Schroder Income Growth Fund plc (SCF) has published its annual report and financial statements for the year ended 31 August 2026, reporting a share price total return of 23.0% and a NAV total return of 19.0%. The investment trust achieved its 31st consecutive year of dividend growth, retaining its status as one of the AIC's Dividend Heroes. Dividends per share rose 4.1% to 15.30p, with dividend growth exceeding inflation over one, three and ten years.

Key Points

  • Schroder Income Growth Fund plc (SCF) — AIC-listed UK equity income investment trust managed by Schroder Investment Management Limited
  • NAV total return of 19.0% and share price total return of 23.0% for the year ended 31 August 2026, against 21.3% for the FTSE All-Share Total Return Index
  • Dividends per share increased 4.1% to 15.30p; earnings per share rose 8.5% to 13.62p; revenue reserves stand at 5.07p per share following the fourth interim dividend paid 30 October 2026
  • Investors may watch the AGM on 10 December 2026 and the board leadership transition, with Victoria Muir succeeding Ewen Cameron Watt as Chairman

SCF Dividend and Earnings Performance for the Year Ended 31 August 2026

The fund increased dividends per share by 4.1% to 15.30p for the year ended 31 August 2026, extending a 31-year consecutive growth record and maintaining AIC Dividend Hero status. Earnings per share rose 8.5% to 13.62p, with the dividend 0.89 times covered by earnings. The announcement notes that dividend income was broadly unchanged at £10.3 million, and total income at £10.4 million, reflecting portfolio repositioning and a greater proportion of UK company returns delivered via share buybacks rather than ordinary dividends. Revenue reserves following the fourth interim dividend stood at £3.3 million, equivalent to 5.07p per share.

Share Repurchases Narrow SCF Discount as 3,000,411 Shares Bought Back for £10.7 Million

The company repurchased 3,000,411 ordinary shares for treasury during the financial year, representing 4.4% of issued share capital, for total consideration of approximately £10.7 million at an average price of £3.53 per share. The buyback programme contributed approximately 0.3% to NAV accretion. The average discount to NAV during the year was 6.8%, narrowing to 5.3% at the year end. As at 5 November 2026, the discount stood at 5.7%. The board stated its intention to continue repurchasing shares where doing so would meaningfully enhance asset value per share, targeting a discount within single digits under normal market conditions.

Schroders-Nuveen Combination Completed and SCF Credit Facility Amended to £25 Million Evergreen Basis

The announcement confirms that the Nuveen acquisition of Schroders became effective on 1 October 2026 following satisfaction of all antitrust, regulatory, and court sanction conditions. The board states it has closely monitored the process and will continue to do so. Separately, the company's one-year £30 million revolving credit facility with The Bank of Nova Scotia, London Branch matured and was replaced in September 2026 with a £25 million revolving credit facility on an evergreen basis with the same lender. Average gearing during the year was 9.5%, ending the year at 9.8%.

Board Succession and Articles of Association Changes Ahead of 10 December 2026 AGM

Chairman Ewen Cameron Watt will step down following the AGM on 10 December 2026 at 1 London Wall Place, London, with Victoria Muir, Senior Independent Director since December 2022, succeeding him. David Ballance joins as a Non-Executive Director from 3 September 2026, bringing approximately 37 years of investment experience including 15 years as a portfolio manager at Ruffer LLP. The board is also proposing amendments to the Articles of Association, including a contingency process to ensure continuity if insufficient directors are elected, and an extension from three to six months of the period for putting liquidation or reorganisation proposals to shareholders following an unsuccessful continuation vote.